28 january -1 february 2013 weekly letter

7/29/2019 28 January -1 February 2013 Weekly Letter

1/16


2/16

Weekly Financial Letter Page 2Copyright 2012. All Rights Reserved

www.mahendraprophecy.com

WEEKLY FINANCIAL LETTER

Weekly Newsletter from 28 January 1 February 2013

Dear Members,

Specially In the twenty years we humans made huge changes in our life patterns by developing

new technologies. In fact, from 1900 onwards people started getting busy in developing the world

and western countries played a key role. Before the 1900s people used to be more violent, ready for

attack, killing and grabbing peoples land or making people suffer. People were not aware of the real

meaning of religion, just powerful influential leaders used to control society in the name of religion.

In the olden days cruel people use to come on horses, kill people if they didnt listen; take everything

they got and there was no safety for children. Yes, there is no doubt that the world has moved farahead for the betterment of society.

Thank God, we are born in the current time where law and order at least plays some role, people

have more democracy now, and the media is so powerful that it can spread any news on events to

bring awareness. BUT Even currently where extremists are there those area still suffering (great

example of Taliban), they takes away freedom from society.

Whatever we have done in our small study on spiritual or inner awareness has given us humbleness,

kindness and teaches us the principle of nature. I believe spiritual awareness is far greater and

better than any religion. I was born in Hindu Brahmin Family, I am very religious person, and my

religious duty is following the key principle of nature. Yes, the world is competitive and we have to

compete not to beat anyone but to make you better.

There is a reason once again to start this week financial newsletter on this note and we always do it

after a few weeks or after a few months because the more awareness you bring within you, makes

you a happier, clam, content and successful person. I am not trying to preach to you here, I am still

very young and many of you must be far ahead than me in terms of understanding natures principle

and spiritual awareness.

We are writing this, because we should feel that the world is a far better place to live, success is

great tool to bring others up, and wealth is great to distribute which can help the needy. The

Financial market is great place to make quick financial success but natures principle says what you

really want in life, you want success and that commitment is important and once you make that

commitment with nature then we are sure success will come but if you forget about your

commitment, with nature then nature will take away everything. Yes, this is the most powerful law

or underline of success. Please make sure you have commitments to nature and then you start

investing or trading and we are sure no one can stop your success. The one truth is that we are

walking towards our financial destination, life may end after one year, or 30 years, but the truth is

that life will end one day so what you will like to do most from today is important and that you can

get it from your inner awareness.

Edition: 790 27 January 2013


3/16




Please give yourself some time every single day to, enjoy the time which you are spending with

yourself. This will make you happy, and you will make your family happy, and there will be meaning

to say that the world is great place and thank nature for giving me birth on this beautiful planet

rather than many people who curse themselves and thats why their life exists.

Most of you those who have been following our work since the last ten to fifteen years are aware

that I like to talk on awareness and natures principles. Many who are new might feel award that

why am I talking about all this on a financial newsletter but there is meaning because awareness is

the most important key to become a successful in any business. Financial markets are the most

volatile and once you make decisions in a hurry, most of times it brings loses. At least this has always

happened with me, look at last week example, I bought Nasdaq in a hurry around 2737 after Apple

announced its results, it went to 2712 and without keeping awareness that overall trend looks

strong I got out quickly because I wanted to see the markets reactions the next day. Without

awareness that I am predicting the greatest bull market so there was no need to worry but watchingnews, feeling short term fear made me take the wrong decision.

Anyways, watching CNBC results and at the same time making decisions without planning and

immediately getting out, during all this process my inner awareness was not there. This always

happens when ego takes place, and when ego takes place awareness goes away, I think lately I had a

bit ego because of one of the best calls of S&P buying since last one year, I forget that this call I

made was purely from astro indications, I am nothing how can I make any call without this theory.

Anyways, there is a lot to talk but I am ending this part here, let me go back to the financial market,

before we start this weeks newsletter I humbly say that all our predictions are purely

interpretations of astro combinations, I shouldnt be taking any credit of these predictions.

Lets see this weeks outlook for all major markets from 28 January to 1 February 2013

METALS

What is the main heading of 2013? In the two months

newsletter and few times we publicly mentioned that thestock market would keep making new highs S&P toward

3200, metals and other commodities would struggle in

2013, Yen and Treasury bonds would fall and dollar would

be bottoming out in early 2013. These are my main

predictions of 2013, and if you just follow these predictions

then no one can stop you from making money. Yes, the

strategy is key and how you plan your trades and investments is purely upon each individual. Many

of my personal clients who speak on a regular basis are also not able to take full advantage because

they also hear too much noise from analysts and all different opinions and they get confused.


4/16




Stay long with S&P at this high price and keeping away from gold which has proven to be one of the

best investment instruments of last 10 years. We have to disconnect with our love or hate towards

any instrument when trading. You just respect the future coming trends and invest in that and we

are sure you will never be disappointed. Many metals investors are feeling pain because they neverliked S&P or the stock market because they have gotten used to making money in metals so when

we recommend them to invest money in the market they simply ignored our advice and now they

are in a confused state.

Once again our view in 2013 is not very bullish for metals, yes there will be a time when gold will be

making attempts to move higher but the overall over trend will remain subdued. This week metals

may try to stabilize and may show that the lower side is limited but we wont recommend any

buying on any false rise.

On Monday price of gold may stabilized around the lower side predicted range and if it fails to rise

on Tuesday it will confirm that golds trend is entering a depressed direction. Unfortunately silver is

tied to close to gold so also it can suffer loses on a short term basis.

Base metals Palladium and Platinum still look better but copper which is ruled by the planet

Mars may remain under attack by a bear trend. If you still like to hold platinum and palladium then

you should sell gold and copper. Silver we can keep buying in terms of longer term calls on each

dollar fall.

Late Wednesday will be the right time to sell precious metals because weakness will continue

throughout the week.

Here is Mondays range: (March/April 2013 contract):

GOLD: $1665.10 to $1648.90

SILVER: $31.41 TO $30.98

COPPER: $369.95 TO $363.00

PALLADIUM: $745.90 TO $729.20

PLATINUM: $1702 TO $1682.10

INDEXES

Wall-street and many world markets are enjoying one of

the greatest steady rising cycles. Fund managers and

people who bought value stocks are doing well. Many

companies that had value are coming back like

BlackBerry, HC, Dell and BestBuy because they are notout from market, yes they are down. Netflix was a big


5/16




example and lesson to investors because everyone still watched movies on Netflix, I still have

account with Netflix and in Europe they are growing very fast so finally the stock went up more than

200% percent in three months. Netflix stock went up from $50 to $168, look at BlackBerry (RIMM),

it also gained from $6.00 to$18.

Apple has to do something

because of

Apple NASDAQ

underperformed

in the last six

months. Too many people

started following Apple, and

too much money was involvedin Apple, but after this gloomy

environment we still like

Apple, it is a great company to

buy and invest in because stocks will bounce back to four digits. Just ignore the market noise; the

company is holding

$137 billion dollars in

cash on their balance

sheet. Our important

predicted support

levels have beenbroken, and now the

next strong support

is around $432, so

add stocks here and

we will see soon

whether it is going

back to $500 and

above in the next

quarter.

Before we start

writing about this weeks trend, we would like to remind you that we see S&P can from move to

1548 to 1565, this target we predicted a few weeks back. We stated that if S&P trades above 1474

for two days then our next target is 1552. Now it looks like S&P will enter a new horizon because for

the whole of last week S&P held above 1474.

European markets will follow S&P, and other world markets will also follow S&P so the now time has

come for the world markets will follow S&P without each country and companies fundamentals or

economic strength.


6/16




Last week we recommended getting out from stocks in the European markets, just play Indexes now,

trade in and out. If you selling any market then buy S&P against your selling trade because without

hedging you shouldnt be making any naked short trades.

This weeks astro indicators are positive from Monday to Wednesday. On Monday we may see

volatility due to Moon in Cancer, as Cancer sign represents water and water is a sign of uncertainty

with high tide as well as low tide, it depends on the Moons gravity.

The Full Moon is on Sunday, and Sunday represents the Sun, so the markets will

move in a positive direction here in USA during electronic sessions.

On Tuesday and Wednesday we may see the markets bouncing back from lows.

During the last two hours of trading sessions we recommend booking profit in

markets and stay aside as a short term weaker trend may enter the markets from Thursday and

Friday and the markets will trade in a confused direction. My best advice is the wait and watchstrategy after mid Wednesday, as sharp corrections can make investors worry, this correction will

last for a short period.

Monday will be an interesting day because we may experience high tide in the markets, which

means stock indexes can move up like a tide. Focus on Index based stocks in all major markets like

Australian, Singapore, Indian, European and USA markets. Buy highly Index weight stocks. Following

the high tide you can continue on Tuesday and early Wednesday.

Mondays trading range (March 2013 Contract):

AUSTRALIAN (Cash) 4879 to 4850

NIKKEI 11125 TO 10915

NIFTY S&P (Spot) 6117 to 6062

SINGAP0RE (cash) 3283 TO 3260

HONG KONG (cash) 23689 to 23511

CAC 3805 TO 3769

DAX 7905 TO 7801

FTSE 6275 TO 6229

S&P 1505.25 TO 1491.50

NASDAQ 2747.75 TO 2714.25

RUSSELL 909.5 TO 898.10


7/16




DOW 13891 TO 13780

TREASURY BONDS

On the last week Thursday and Friday thirty year bond prices

fell sharply as predicted. Yes, the Thirty year bond fall remained

the best-selling recommendations in the last two months and

on the other hand avoiding metals and buying S&P remained

the best advice so why should we focus on any other markets

when a few calls are doing so great.

This week it looks like Thirty year bonds will break on our lower side first target, it means that it can

approached our next predicted target. Our first target was 143.10 which should get fulfilled earlythis week. Our next target that we predicted was 135, which shall also get also fulfilled soon in the

next two months. Sometimes our predicted targets get fulfilled quicker than our predicted

conservative time frame, like Swiss Franc, Yen, Soy Bean and Indexes.

From Monday to Wednesday Bond prices will fall sharply and may touch new lows, on Thursday and

Friday we may see some rebound so trade accordingly. We may write an update in Thursdays

flashnews about how quickly it can fall to 135 if it doesnt rebound.

Mondays trading range:

TREASURY BOND 146-14 TO 145-10

SOFT COMMODITIES

As we mentioned a few times soft commodities

underperformed during 2012, and also 2013 started with a

weaker trend except cotton which did very well. Trading the

markets with technical charts gives the most touch time, this

is not my view it is from one of the great technical advisorsMr. Gerry. In 2005 I was following coffee very closely through

my astro indicators, and he was following purely using

technical. I was predicted great a bull cycle to start and he was

saying, Mahendra, weakness will continue. I dont remember the date but I bought coffee around

$63.90, he told me dont buy as it is falling down and may make new lows. He also wanted to buy

because I was bullish but following the technical he didnt buy. In three days coffee prices moved

from $63.90 to $90.00, and in the two months $125. He still remembers that up move in coffee

because he missed that trade.

The same situation is taking place now; most technical analysts are very negative on coffee due tosharp fall on Tuesday and Thursday of last week. Every analyst is predicting lower prices for coffee in


8/16




the coming days, and yes that scares me as well because most hedge funds, commercials and

farmers follows technical charts very closely and they act on technical patterns. Our astro indicators

predicted a low for coffee around $142.20 in the worst case scenario, and $146.20 in near term. If

coffee still breaks these levels on down side then I may get concern because we may be making amajor error in our study. At this stage our call of buying coffee remains intact; so lets see if our astro

indicators win or technical indicators push prices down.

On Monday coffee prices will remain sideways, but from Tuesday onwards we may see prices

moving higher and on Wednesday they will trade in a narrow range to a bit weaker but on Thursday

and Friday they should push toward higher sides. Fundamentals news are bullish and bearish for

coffee, bullish news is the Roya (Fungus) situation is getting worse in many countries. Bearish news

is Brazil is expected to have a higher side predicted crop in 2013 and technical charts showing

weakness. (Read in detail about coffee at the end of this newsletter for educations purpose)

At this stage after coffee, our next recommendations is buying sugar and orange juice, so take some

positions in both of these soft commodities. The higher side limited so on small profits you should

close the trade. Weather conditions in Brazil and Thailand are far better for the sugar crop, and

sugar production is very high. An Indian production is mixed, and India is importuning sugar rather

than exporting! We dont know the reason behind this but at this stage no longer term trades should

be taken in sugar. The weather in Florida is favoring the orange juice crop but our indicators are still

saying take small buying trades in orange juice.

Astro indicators for cocoa are negative, in fact since the last nine months we have been

recommending avoiding positions in cocoa. Still we see cocoa will remain weaker so there is no need

to buy any positions there. Fundamental news is also negative for cocoa, as weather conditions are

good in the Ivory Coast, and ending stock at warehouses is increasing. Europe is biding lower price

on Cocoa.

Monday trading range: (Mar 2013 Contract)

COFFEE: $149.75 TO $146.45

COTTON: $81.75 TO $79.80

COCOA: $2198 TO $2145

SUGAR: $18.55 TO $18.18

ORANGE JUICE: $115.25 TO $112.20

GRAINS

At this stage grains will trade mixed as they have been trading mixed

since the last five months. We dont recommend any longer as well asmedium term positions in any grains except Rice. Though fundamental


9/16




news is mixed on rice, Venus represents the white color so it is favoring rice. Currently all white color

related things are doing fine like Cotton, platinum and palladium. Sugar and silver are both also

white but they are represented by the Moon, and currently the Moons cycle is not 100% favoring

these both these commodities but surely there is still a 50% support because of the white color andthat is the reason we predicted silver out performing gold in the medium and longer term.

Last week on Thursday we stated that corn looks better but it never moved up so stay aside without

taking any big positions.

Fundamentals and technical are mix for the grains, Australia is expecting showers so concerns that

the heat wave is slowing down.

The best strategy is to trade in and out in grains as per our daily predicted ranges, as this strategy is

working very well at this stage.

Mondays trading range (March 2013 contracts):

CORN: $728.25 TO $715.50

WHEAT: $783.50 TO $769.25

RICE: $15.59 TO $15.35

SOY: $1454.25 TO $1433.25

SOY MEAL: $419.80 TO $412.50

SOY OIL: 52.59 TO $51.65

ENERGY

Oil traded in a very narrow trading range during last week,

and natural gas came down as predicted and other energy

products like heating oil and RB gas traded positive.

At this stage oil is following the markets so traders are

chasing oil trade or we can say they are holding their trades

tightly. We are a bit nervous at this stage because on

weaker days oil is not falling, we wont recommend any new

trades in oil until we dont see corrections.

On Monday astro indicators are giving positive indications for oil so it may trade in a positive

direction for the whole day, and may react during the closing hours so on both sides prices may get

fulfilled.


10/16




On Tuesday we may see rising again in oil prices but will it give up all gains during the second half of

the day, we recommend selling oil on Tuesday. One can add more selling positions on Wednesday on

the higher sides.

On Thursday and Friday we will see weakness or sharp falls in oil prices. Heating oil and RB gas will

follow oil so our trade recommendations are same as oils weekly trading pattern for both of these

energy products.

Natural gas fell sharply during last week from $3.65 to $3.40 as predicted; we see weakness

continuing in gas prices in the coming days. Sell natural gas on any rise on Monday and hold

positions for the whole week, we may see $3.26 in coming days.

Note Those who are holding shorts in oil should reduce exposure by 50% if oil doesnt fall or if oil

opens around our predicted lower side target because since last one month we have been wrong on

predicting oil trend. Once we see that our astro indicators are getting right then you can double yourtrade.

Mondays trading range (all March contracts):

OIL: $97.83 to $95.03

NATURAL GAS: $3.50 to $3.40

HEATING OIL: $3.0750 TO $3.0332

RB GAS: $2.9205 TO $2.8610

CURRENCIES

Last week Japanese Yen collapsed toward multi year lows,

this proven one of best trade so far. Now we may see some

rebound taking place in Yen but it will be only for the short

term. Now next two months trading range for Yen will be

1.0810 to 1.1489. Monday we will see both sides moves inyen, Tuesday you can buy around predicted lows in the

flashnews of Tuesday and keep adding buying position in it.

One can book profit in the Yen by late evening of Thursday or Friday morning because Friday it will

trade mix, or prices will come down from higher sides of the day.

Euro traded sharply higher toward multi months high against most of all currencies, Fridays negative

days move confirm that Euro may move higher for the two days before it move down sharply. We

highly recommend taking small sell positions in Euro, and keep adding because this we can use it as

hedging positions against stock market buying. Monday we see rising momentum in Euro continue,

sell very small quantity around predicted high here below. Add small quantity more on Tuesdayaround predicted higher as later in evening we may see Euro prices falling.


11/16




Australian and Canadian dollar will keep trading lower, so those who shorted these currencies

should hold their sell position because both these currencies can fall sharply in coming days. Our

target for Australian dollar is Par value and Canadian 0.9710. There will be sharp corrections in both

of these currencies from Wednesday.

Swiss Franc will move higher on Monday, so buy Swiss Franc against all other currencies, this will be

good trade to hedge your risk. We wont surprise if it moves toward 1.10 during this week.

British Found will remain in confuse situations; we are not advising to take any trade at this stage.

Selling will be highly recommended on any rise or on late Wednesday. We have been watching very

carefully Pound trend because it have been constantly losing value against most of currencies.

Dollar index was saved by Yen fall otherwise it should be toward $78.00 levels by now. Anyway

Dollar is trading in very narrow trading range and we strongly recommend building some core

position or if you already have position then adding more positions around 79.50 levels. Dont govery high leverage trade but surely this trade in make you fortune in the 2013.

Emerging market currencies are trading mix, Rand gained value after moving down sharply on last

Thursday. Rand fall is purely to attract more investment in country, also interest high rate is not

attracting many because institutional investors missing investment opportunity in other countries.

Mining industry is not performing well; many investors are bit concern about gold

underperformance so Rand may lose shine in coming days.

Indian Rupee is trading in the tight range, looking for directions but policy makers are confused so

Rupee may remain here around same value. We dont see any strength coming immediately, surelypositive trend from Euro and weakness of Dollar in international market may help Rupee to remain

bit positive. We see same trading range for RUPEE from 53.20 to 55.90 in the next two months

before its start getting stronger or moving toward 50.00. Trading in and out will be best strategy for

Rupee at this stage.

Point to be noted:

Still there is lot of problem in Europe, Italy, Greece and Spain has to address fundamental points,

at this stage positive trend of financial market is making banking and financial industry happier

but they have to fix bottom line problems in Euro zone. Mr. Draghi looks more optimistic at this

stage, our views are also positive for Europe in 2013 and 2014. Most of you aware that in the 2015

euro may lose 50 to 70% value so we will focus on Dollar more in coming time.

Mondays trading range (March Future contract).

DOLLAR INDEX 80.04 to 79.60

AUSTRALIAN DOLLAR 1.0423 to 1.0345

CANADIAN DOLLAR 0.9942 to 0.9879

BRITISH POUND 1.5841 to 1.5745


12/16




EURO 1.3509 to 1.3425

JAPANESE YEN 1.1099 to 1.0952

SWISS FRANC 1.0833 to 1.0759

RUPPEE 54.00 to 53.48 (Spot)

RAND 9.02 to 8.84 (Spot)

COFFEE DETAIL OUTLOOK

Next week I will be in Brazil, we love drinking coffee and surely we may invest some money in coffee.

Here is fundamental Coffee Data of 2012/23. At this stage Fundamental looks okay so commercial

and traders are not worried about any major price movement in coffee price, also technical chart of

coffee is not showing any great strength but if weather catastrophes take place then whole scenario

will change overnight. History is witness how coffee prices moved limit up, here what I we know

small about history of coffee and this we mentioned before:

I n 1 9 0 2 t h e r e w a s d ev a st a t i n g f r o s t w h i c h cr e a t e d p a n ic i n t h e c o f f ee m a r k e t ,

o t h e r t i m e s s ev e r e f r o s t o c cu r r e d w a s in 1 9 1 8 , 1 9 4 2 , 1 9 5 3 , 1 9 5 5 , 1 9 5 7 , 1 9 6 6

and then aga in i n 1975 (Ju l y 17 -19 ) . Ve ry seve re f ros ts h i t B raz i l and p r i ces

w e n t l i m i t u p f o r s e v e n d a y s . P r i c e o f c o f f e e i n f u t u r e m a r k e t w e n t u p f r o m

$ 7 0 . 0 0 t o $ 3 4 0 n o n - s t o p .

M o r e r e ce n t l y i n 1 9 9 4 t r a d e r s w e r e a w a r e t h a t t h e s ea so n w o u l d b e co l d b u t o n

2 5 - 2 6 J u n e 1 9 9 4 f r o s t h i t b r a z i l c o f f e e g r o w i n g a r e a a n d a f t e r t w o w e e k s t h e

s am e t h i n g h a p p e n e d o n 9 - 1 0 Ju l y w h i c h cr e a t e d h a v oc o n f u t u r e t r a d i n g f l o o r .

Mos t o f us a re aware tha t 1994 was yea r o f f ros t and d rough t . Co f fee p r i ce

w e n t f r o m $ 7 0 . 0 0 t o $ 2 5 5 l i m i t u p b e f o r e a n y o n e c a n t a k e a d v a n t a g e o f t h i s

w o r st n e w s.

I n 1 9 9 6 c of f e e p r i ce s w e n t u p n o t b e ca u se o f Fr o s t b u t d u e t o s h o r t s u p p l y .

I n 1 9 9 9 , d r o u g h t h i t B r a zi l , a n d 4 0 % c r o p g o t d a m a g e d b u t i t n e v e r a f f e ct e d

p r i ce as i n th e p rev ious few yea rs crop y i e l ds w ere good .

2 0 0 0 w a s m y s t e r y y e a r , a f t e r 1 9 9 9 d r o u g h t , w h e r e t h e r e w a s m o d e r a t e f r o s t ,

p r i c es w e n t u p f o r f e w d a y s an d t h e n p r i c es k e p t f a l l in g s h a r p l y a n d m a d e 3 0

y e a r lo w .


13/16




Million

60Kilogram

Bags

I t i s alw ays ve ry t r i c ky to t r ade crop comm od i t i es as key p laye rs p l ay a v i t a l

r o l e i n p r i c e m o v e m e n t . I f t h e y a r e w e l l p l a c e d w i t h t h e i r b e t t h e n t h e y m a k e

pr i ces sky rocke t , and i f key p laye rs a re no t i n b i g pos i t i on and i f w eaker hand

e n t e r s i n m a r k e t t h e n t h e s e p o w e r f u l g r o u p s p u s h p r i c e d o w n a n d m a k e s u r e

t h a t t h e w e ak e r h a n d l o s es ev e r y t h i n g .

This year record World Production Forecast for Third Consecutive Year, here is USDA forecast:

2012/13 Forecast Overview

Record World Production Forecast for Third Consecutive Year

160

120

80

40

0

2008/09 2009/10 2010/11 2011/12 2012/13 F

Brazil Vietnam Other

2012/13 Forecast Overview

Brazils production is forecast at a record

55.9 million bags, up 6.7 million from theprevious year due primarily to the Arabica

trees entering the on-year of the biennial

production cycle. Whereas previous cycles

grew steadily, this year it is forecast slightly

below the last on- year due to frost damage

and dry conditions in Minas Gerais, its main

growing region. The Robusta harvest is

forecast to continue expanding as favorable

weather and good crop management aided

fruit settings and development in Espirito

Santo, where the vast majority is grown.Nearly half of the additional supply is


14/16




expected to augment exports, with the rest going to modest gains in consumption and stocks.

Vietnams production is forecast at 25.0 million bags, down 1.0 million from last years record

harvest (significant area expansion and record yield caused last years unexpected 30 percent

production spike). Pre-season rain throughout the growing region caused an early bloom whichlowered yield. Bean exports are forecast 2.0 million bags lower to 22.0 million, while ending stocks

are expected to almost double to 1.8 million bags. Consumption is forecast to continue rising as the

coffee culture spreads.

Indonesias production is forecast to rebound 1.4 million bags to 9.7 million on favorable growing

conditions, whereas the previous two harvests suffered from

excessive rainfall. The forecast falls short of the record 2009/10

harvest because coffee area has since declined over 5 percent

as higher prices for cocoa, rubber, and palm oil encouraged

substitution. Bean exports are forecast to recover 1.2 million

bags to 6.1 million as production gains are mostly exported.

Indias production is forecast to rise 100,000 bags to a record

5.3 million on higher Robusta output. Growers in Karnataka, the

largest coffee producing state, are anticipating a record

Robusta harvest due to increased area and yield. Although

bean exports are forecast to slip 100,000 bags to 4.1 million,

this marks the third year of strong exports and declining stocks.

Colombias production is forecast to slide nearly 200,000 bags to 7.5

million following reports that production in the first two months of

the October- September marketing year was down 5 percentcompared to the same period last year. This marks the lowest

production in four decades and well below the record 18 million

bags reached in 1991/92. For the fifth consecutive year, problems

are expected to persist related to the coffee cherry borer and rust.

Also, the ongoing tree renovation program has the near-term effect

of lowering output until these trees reach maturity. As a result,

bean exports are forecast at just 6.5 million bags, down 3 percent

from the previous year. Bean imports, which jumped to 1.1 million

bags last year to supply consumption, are forecast to remain

elevated at 900,000 bags.

Central Americas production is forecast to add 200,000 bags to

total 14.6 million as modest gains in El Salvador and Honduras more than offset a slight decline in

Costa Rica. Leaf rust was recently detected in several countries, constraining production. The

regions bean exports are forecast to rise 300,000 bags. http://www.aventura-cafe.com/Central-

America-Caribbean:_:90.html

The EU accounts for nearly half of world bean imports and is forecast to increase slightly to 45.5

million, with top suppliers including Brazil (28%), Vietnam (25%) and Honduras (7%). As a result,

ending stocks are expected to remain tight near the decade low.

The United States imports the second-largest amount of coffee beans and is forecast to decrease


15/16




slightly to 23.4 million, with top suppliers including Brazil (25%), Vietnam (18%) and Colombia (13%).

Ending stocks as well as consumption are forecast to rise incrementally.

Here USDA revised report, but we should aware that recent Roya is having huge impact on crop

in central America, also dry weather is have been increasing in Brazil is also concern sign. India

also announces 15% less productions this year.

Anyway we will be watching situations very closely in market during 2013/14.

World production is revised up from the June estimate by 6.8 million bags to 144.4 million.

Vietnam is revised up 5.0 million bags to 26.0 million due to higher-than-anticipated area and

yield.

Honduras is raised 1.0 million bags to 5.6 million as more trees reached fruit bearing maturity

earlier than expected, following previous years area expansion. World bean exports are raised 6.4

million bags to 101.5 million.

Vietnam is revised up 5.0 million bags to 24.0 million following higher available exportable

supplies.

Honduras is raised 1.1 million bags to 5.3 million due to increased production.

Coffee is currently trading about 79% lower than its all-time inflation adjusted high set in the 1970s:


16/16



Have great trading week.

Thanks & God Bless,

Mahendra Sharma,

Sunday 3.30 PM Santa Barbara, 27 Jan 2013

Reading daily range: When we predict a weaker

trend it means prices can break lower side and

they can trade below predicted lows. (You can

cover short but dont buy extra at lower levels until

our indicators give buy signal).

When we predict a positive trend, means daily

price can break upside and they can trade higher

than predicted price (you can book profit but dont

short that market).

Copyrights: We have just updated the copyrights of our work on

www.mahendraprophecy.com, under the USA and under

international laws. There will be heavy penalties and legal charges

against individuals, groups or firms who are copying, editing or

forwarding our work in any form without authorized permission.

Members or Subscribers of mahendraprophecy.com should do their

own research and due diligence before investing in any of

recommendations. Investing in stocks, futures and options is very

speculative and carries a high amount of risk. Subscriber may lose

money trading and investing in such investment.

http://www.mahendraprophecy.com/disclaimer.php

http://www.mahendraprophecy.com/privacy-policy.php

28 january -1 february 2013 weekly letter

Documents